State of North Dakota - Motor Vehicle Dealer Bond
Required for motor vehicle dealers selling new or new and used vehicles in North Dakota. Protects consumers and the state from fraudulent practices and ensures compliance with dealer regulations.
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About This Bond
The State of North Dakota Motor Vehicle Dealer Bond is a surety bond required for businesses engaged in selling new motor vehicles or both new and used motor vehicles within the state. This bond serves as a financial guarantee that dealers will operate in accordance with North Dakota's motor vehicle dealer laws and regulations.
Motor vehicle dealerships that sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. The bond ensures dealers comply with state regulations governing vehicle sales, financing, warranties, and consumer protection standards.
The bond protects both the State of North Dakota and consumers from potential financial losses resulting from fraudulent practices, failure to deliver clear titles, misrepresentation of vehicles, or other violations of state motor vehicle dealer laws. If a dealer fails to fulfill their legal obligations, affected parties can file claims against the bond for compensation.
This bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually, and dealers must maintain continuous coverage to keep their license active and remain in compliance with state requirements.
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At a glance
North Dakota Auto Dealer Bond Key Facts
Governed by N.D. Cent. Code § 39-22-05.
The basics
What Is an Auto Dealer Bond in North Dakota?
Yes — North Dakota requires an auto dealer bond. Before the NDDOT Motor Vehicle Division issues a motor vehicle dealer’s license, you must furnish a continuous $25,000 surety bond that runs to the State of North Dakota (N.D. Cent. Code § 39-22-05, form SFN 2933). Trailer dealers and motor-powered recreational (MPR) vehicle dealers post smaller $10,000 bonds instead.
Good to know - Required to hold a North Dakota dealer license. The amount is set by license type: $25,000 for a motor vehicle dealer (new or used vehicles), $10,000 for a trailer dealer, and $10,000 for a motor-powered recreational (MPR) vehicle dealer (motorcycles, ATVs, UTVs, snowmobiles). The bond must be continuous, run to the State of North Dakota, and be on file before the license is issued.
A surety bond is a promise, backed by a surety company, that you will follow North Dakota’s dealer laws. If you break them and someone is harmed — for example, a buyer in a vehicle deal — that person can file a claim against your bond up to its full amount.
The bond protects the public and the state, not you. It runs to the State of North Dakota and indemnifies anyone transacting motor vehicle business with you against loss caused by your failure to comply with the law. If a claim is paid, you must repay the surety company.
North Dakota requires a continuous bond: it stays in force until cancelled and must be on file with the Motor Vehicle Division the whole time you are licensed. If the surety cancels it, your dealer license is suspended — so keep coverage active. Your license itself expires December 31 each year.
Qualification
What You Need to Qualify for a North Dakota Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a North Dakota dealer license — motor vehicle dealer, trailer dealer, or motor-powered recreational (MPR) vehicle dealer — with the NDDOT Motor Vehicle Division.
- You will post a continuous surety bond in the amount North Dakota sets for your license type: $25,000 for a motor vehicle dealer (new or used), $10,000 for a trailer dealer, or $10,000 for an MPR vehicle dealer.
- Your bond is written by a surety company licensed to do business in North Dakota and runs to the State of North Dakota.
- You have an established place of business and proof of garage liability insurance, as the dealer application requires.
- You can keep coverage continuous and renew before your license expires on December 31, since the bond must be on file before a dealer license is issued.
Step by step
How to Get an Auto Dealer Bond in North Dakota: Step by Step
Confirm your dealer license type and bond amount
Decide which North Dakota dealer license you need. A motor vehicle dealer (new or used vehicles) posts a $25,000 bond. A trailer dealer posts a $10,000 bond, and a motor-powered recreational (MPR) vehicle dealer — motorcycles, ATVs, UTVs, snowmobiles — posts a $10,000 bond.
Review North Dakota’s dealer requirements
Read the NDDOT Dealer Handbook. It explains the place-of-business, insurance, recordkeeping, and plate rules you must meet before you apply, plus how the Division reviews applications.
Dealer HandbookBuy your North Dakota dealer bond
Buy your bond and we handle the paperwork. We issue your continuous surety bond on the official North Dakota form for your license type (SFN 2933 for motor vehicle dealers) and provide it, notarized, for filing with your application — there is no bond form for you to download, complete, or sign.
Complete the Application for Dealer’s License
Fill out the Application for Dealer’s License (SFN 2932) with your business details, license type, and place of business. Gather the supporting documents it lists, including proof of garage liability insurance and any franchise agreement for new vehicles.
Application for Dealer’s License (SFN 2932)File your application, bond, and fees with NDDOT
Mail your completed SFN 2932, your surety bond (unless one is already on file), your supporting documents, and your fees to the NDDOT Motor Vehicle Division in Bismarck. The Division reviews the packet and inspects your place of business before issuing the license.
Renew each year and keep your bond continuous
Your North Dakota dealer license expires December 31 each year. Renew before it expires — a $100 late fee applies on top of other fees if you renew late. Keep your continuous bond in force at all times, because a cancelled bond suspends your license.
Paperwork
North Dakota Dealer Bond Forms & Documents
The main application to become a licensed North Dakota dealer — you complete and submit this.
View formNDDOT’s guide to dealer licensing requirements and the rules a licensed dealer must follow.
View formThe official $25,000 motor vehicle dealer bond form — we issue and notarize this for you; you do not fill it out yourself.
View formThe official $10,000 trailer dealer bond form — we issue this for you if you are licensing as a trailer dealer.
View formThe official $10,000 MPR vehicle dealer bond form — we issue this for you if you are licensing as an MPR dealer.
View formYou'll also need
Cost
How North Dakota Auto Dealer Bond Pricing Works
You do not pay the full bond amount. That figure — $25,000 for a motor vehicle dealer, or $10,000 for a trailer or MPR vehicle dealer — is the coverage, the most a claim can collect. You pay a premium, which is a small percentage of the bond amount.
Your premium is set by underwriting, mostly your personal credit. Well-qualified applicants pay a low rate; higher-risk applicants pay more. The premium is separate from North Dakota’s $100 license fee and $100 initial inspection fee.
Worked example
A North Dakota motor vehicle dealer bond is $25,000. You do not pay $25,000 — you pay a premium, often a small percentage of the bond amount for well-qualified applicants. Your exact rate depends on underwriting, mainly your credit. Start a quote to see your price.
Filing
Filing Information
North Dakota Department of Transportation, Motor Vehicle Division — Dealer Services
Filing notes
Your continuous dealer surety bond must be furnished before the Motor Vehicle Division issues a dealer license (N.D. Cent. Code § 39-22-05). The bond is mailed in with your application unless one is already on file with the Department.
The bond runs to the State of North Dakota and must stay in force the whole time you are licensed. If the surety cancels the bond, it becomes void 30 days after notice is mailed — and your dealer license is suspended — so keep coverage continuous.
We issue your bond on the official North Dakota bond form for your license type (SFN 2933 for motor vehicle dealers) and provide it, notarized, for filing with your dealer application — there is no bond form for you to complete or sign.
FAQ
North Dakota Auto Dealer Bond FAQ
Yes. Before the NDDOT Motor Vehicle Division issues a motor vehicle dealer’s license, the applicant must furnish a continuous $25,000 surety bond running to the State of North Dakota (N.D. Cent. Code § 39-22-05).
It depends on your license type: $25,000 for a motor vehicle dealer (new or used vehicles), $10,000 for a trailer dealer (SFN 2898), and $10,000 for a motor-powered recreational vehicle dealer (SFN 3003) — motorcycles, ATVs, UTVs, and snowmobiles.
No. We issue your bond on the official North Dakota form for your license type and provide it, notarized, for filing with your dealer application — there is no bond form for you to complete or sign.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
North Dakota requires a continuous bond — it stays in force until cancelled and must be on file the whole time you are licensed. Your dealer license itself expires December 31 each year, so renew the license annually and keep the bond active.
The surety can cancel by mailing written notice to you and to the Motor Vehicle Division; the bond becomes void 30 days later, and your dealer license is suspended when the bond is cancelled. Replace coverage right away so you can keep selling.
Yes. The bond must be furnished before your dealer license is issued (N.D. Cent. Code § 39-22-05). Mail it with your application unless a bond is already on file with the Department.
The North Dakota Department of Transportation, Motor Vehicle Division — Dealer Services, in Bismarck. You can reach them at (701) 328-1285 or mvds@nd.gov.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with North Dakota Department of Transportation, Motor Vehicle Division — Dealer Services before you file. This page is informational and not legal advice.
FAQ
North Dakota Auto Dealer Bond Questions
The cost of a North Dakota auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most North Dakota auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your North Dakota license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
